Impact of Terrible Flood in Hochiminh City to Local Insurers

After torrential rains causing flood in HCM city in late of September 2016, the local insurers have promptly approached their customers for supporting purposes.

According to preliminary computation of the insurers, estimated loss amount in respect of motor vehicle damage stands at 10 billion Vietnam dong while property losses is estimated at around 20 billion Vietnam dong. These figures are expected to be increased after receiving full statistics.

On the first day of this flood event, PTI has received 130 claim notifications and most of them related to waterlogged motor vehicles. The loss situation is predicted to be worse as a lot of vehicles are still trapped in the parks, a PTI representative said.

Another insurer, Liberty have been advised of more than 40 claim notices of motor damaged by flood in HCM city. Liberty is co-orperting closely with the garage owners in order to determine the cause of damage (ex: the car is waterlogged or water-hammered). PVI Insurance also provides their figures with more than 100 damaged cars including both waterlog and water hammer.

In case of the water-logged loss, the average repair cost will be more than ten millions Vietnam dong, while this expense in case of water-hammered damage will cost up to billions Vietnam dong.

Terrible flood in HCM city not only affects to motor vehicles but also causes extensive damage to properties. In Sept 29, representatives of insurance companies immediately came and supported the clients suffering from damage of the flood (including wood, paper, cotton and silks enterprises). The probable loss amount in property insurance is estimated up to billions of Vietnam dong.